Toshiba Corporation, the Japanese electronics conglomerate, will end its 74-year run as a listed company and will rebuild itself as a private firm, following a statement released today by the company.
The transition came as a result of a successful takeover by private equity firm Japan Industrial Partners (JIP). The takeover bid amounted to a tender offer of 2 trillion yen ($14 billion) and the firm owning 78.65% of Toshiba’s shares.
Owning more than two-thirds of the company allows the group to complete a $14 billion deal and take it private.
Through the deal, the 148-year-old electronic-to-power-stations maker’s shares could be taken off the stock market as early as the end of the year.
While the company had accepted the buyout back in March, it had to deal with investors and shareholders who were unhappy with the price. Toshiba, however, argued that there was no prospect of a higher offer or competing and had to ultimately accept the deal.
“We are deeply grateful to many of our shareholders for being understanding of the company’s position,” said chief executive officer Taro Shimada in the statement given and added that the company will “now take a major step toward a new future with a new shareholder”.
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